Yum Rises On Strong 2012 China Revenue, Positive Chatter

By Teresa Rivas

While stocks gave up recent gains to dip once again into the red in recent trading, shares of Yum Brands (YUM) were up 2.9% to $70.

Part of that looks to do with chatter about positive thoughts from OTR Research. The company is also likely benefiting from news late yesterday from the China Cuisine Association, which noted that revenue from the nation’s biggest restaurant chains rose 16.5% last year. Yum, the biggest player in China, saw sales move up 24% in 2012. McDonald’s (MCD) did not provide data and wasn’t part of the survey.

The marketseems to be shrugging off complaints that Yum is spoiling Little Sheep restaurants, a chain of hot pot purveyors that sold itself to Yum in 2011. A blogger from the South China Morning Post noted that overall, the report looks “a bit biased.”

The company is scheduled to update same store sales figures for China next week, before reporting second quarter earnings July 10.

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